EUROPEAN COMMODITIES UPDATE: Crude marches higher, while precious metals are flat pre-FOMC and base metals slip further
Analysis details (10:27)
WTI and Brent July futures are firmer intraday after the benchmarks both settled higher by some 0.85/bbl apiece yesterday. The complex is seemingly underpinned following commentary from the Saudi Energy Minister yesterday (ahead of OPEC+ on June 4th), whose warning to speculators coincided with the intraday bottom in prices yesterday, with news flow for the complex somewhat light this morning. Furthermore, the weekly Private Inventory data printed a surprise draw of 6.8mln bbl (vs exp. build of 800k bbls), with the internals also bullish – participants await the week's DoE metrics later today. WTI reclaimed USD 74/bbl to the upside (vs low 73.52/bbl) and makes its way to USD 75/bbl, while its Brent counterpart topped the USD 78/bbl handle (vs low 77.35/bbl) in recent trade.
- Metals are mostly pressured by the Dollar strength. Spot gold resides around USD 1,975/oz in a near-USD 10/oz range in the run-up to the FOMC. Base metals are softer across the board amid the demand implications from a weaker-than-expected Chinese rebound coupled with the state-side jitters on the debt ceiling front. 3M LME copper briefly fell under USD 8,000/t before finding support near USD 7,950/t.
24 May 2023 - 10:27- Research Sheet- Source: Newsquawk
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